HMRC has begun writing to up to 40,000 individuals and businesses affected by the loan charge, offering settlement packages following new legislation that took effect on 5 August 2026.
The Employment and Trading Income etc (Loan Charge Settlement Scheme) Regulations 2026 confirm that taxpayers have a minimum of 90 days to accept a settlement offer, though HMRC says most customers will be given longer. Any further offer made under the regulations carries a 30-day acceptance window.
Following the outcome of last year’s McCann review into the long-running loan charge issue, each affected taxpayer has been assigned a named HMRC caseworker. HMRC says take-up of the scheme has so far been lower than expected, and it intends to publish settlement figures in the coming months.
Under the scheme, HMRC has indicated some bills could be reduced by up to £70,000, with around a third of those eligible able to settle without making any payment at all.
Jonathan Smith, director of counter avoidance at HMRC, said, “We want to help people draw a line under their loan charge liability and reach a resolution – but that can only happen if you talk to us. Some people will see their bills reduced to zero and that is why we need them to engage with us.”
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